Nippon Ski Resort Development Co., Ltd. (6040) AI Stock Analysis

• Market Cap: ¥27.36B
• Dividend Yield: 0.6%
• Average Volume (3M): 202.31K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.66
• Revenue Growth: 26.88%
• EPS Growth: 44.44%
• Country: JP
• Employees: 233
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -7.13
• Shares Outstanding: 48,008,700
• 10 Day Avg. Volume: 225,610
• 30 Day Avg. Volume: 202,313
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥597.00
• Price Target Upside: 2.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥597.00 ▲(2.93% Upside)

The strong overall financial performance, characterized by robust revenue and profit growth, and positive technical indicators contribute significantly to the stock's score. However, challenges in cash flow management and a fair valuation with low dividend yield slightly lower the attractiveness. The lack of recent earnings call data or notable corporate events means these components do not influence the score.

Nippon Ski Resort Development Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Ski Resort Development Co., Ltd. is a company focused on the operation and management of ski resorts in Japan. It specializes in developing and enhancing ski facilities, offering unique winter sports experiences, and providing comprehensive services to tourists and skiing enthusiasts. The company's core offerings include ski resort management, hospitality services, and related recreational activities, contributing to the promotion of leisure and tourism in the regions it operates.

How the Company Makes Money

Nippon Ski Resort Development Co., Ltd. generates revenue primarily through the operation of its ski resorts, which include lift ticket sales, equipment rentals, and ski lessons. Additionally, the company earns money through hospitality services such as accommodation, dining, and retail sales within the resort premises. Seasonal tourism and vacation packages also contribute to its earnings. Strategic partnerships with local and international travel agencies, as well as marketing collaborations with outdoor sporting brands, further enhance its revenue streams by attracting a global clientele and promoting year-round resort usage.

Nippon Ski Resort Development Co., Ltd. Financial Statement Overview

Summary

Nippon Ski Resort Development Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, efficient cost management, and operational efficiency reflected in healthy margins. The balance sheet is stable with moderate leverage. However, the company faces challenges in cash flow management, with zero free cash flow and operating cash flow in TTM, which poses potential risks for liquidity and investment capability.

Income Statement

Nippon Ski Resort Development Co., Ltd. shows a strong income statement with consistent revenue growth, particularly from TTM with a 12.6% increase over the previous year. Gross profit margin stands at 44.7% TTM, indicating efficient cost management. The net profit margin has improved significantly to 14.9% TTM, showcasing enhanced profitability. EBIT and EBITDA margins also reflect robust operational efficiency at 20.8% and 27.1% TTM, respectively. However, the company experienced a negative EBIT in 2021, indicating past volatility.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.43 TTM, demonstrating prudent leverage management. The equity ratio is healthy at 55.9%, indicating a strong capital base. Return on equity has improved to 18.7% TTM, reflecting effective use of equity capital. While overall leverage is moderate, previous years showed fluctuations in debt levels, necessitating careful future monitoring.

Cash Flow

Cash flow analysis reveals challenges, with free cash flow being zero in TTM, a concern for liquidity and investment capability. Operating cash flow was also zero TTM, indicating potential issues in cash generation, despite previous years showing positive cash flows. The lack of positive free cash flow growth and operating cash flow to net income ratio suggests the need for enhanced cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.28B	8.25B	6.90B	5.57B	4.55B	6.06B
Gross Profit	4.15B	3.56B	2.83B	1.90B	1.18B	2.14B
EBITDA	2.55B	2.28B	1.69B	875.34M	265.21M	1.18B
Net Income	1.38B	1.09B	952.69M	32.05M	-480.25M	139.47M
Balance Sheet
Total Assets	13.15B	10.99B	7.61B	7.20B	6.91B	9.18B
Cash, Cash Equivalents and Short-Term Investments	2.00B	3.14B	1.74B	2.37B	1.96B	4.64B
Total Debt	3.18B	2.86B	682.71M	1.42B	1.48B	2.44B
Total Liabilities	5.42B	3.93B	1.69B	2.13B	1.80B	3.14B
Stockholders Equity	7.36B	6.72B	5.68B	4.84B	4.91B	5.77B
Cash Flow
Free Cash Flow	0.00	-774.42M	196.60M	579.86M	-1.32B	-30.57M
Operating Cash Flow	0.00	1.97B	1.59B	1.22B	-209.98M	1.01B
Investing Cash Flow	0.00	-2.68B	-1.36B	-607.25M	-1.10B	-603.42M
Financing Cash Flow	0.00	2.11B	-851.57M	-199.95M	-1.37B	1.86B

Nippon Ski Resort Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6040, the sentiment is Positive. The current price of 580 is below the 20-day moving average (MA) of 590.00, above the 50-day MA of 564.27, and above the 200-day MA of 463.31, indicating a neutral trend. The MACD of -1.55 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6040.

Nippon Ski Resort Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7932	86 Outperform	35.35B	13.49	6.17%	3.96%	-1.69%	-2.96%
6040	78 Outperform	¥27.36B	17.10	―	0.60%	26.88%	44.44%
4691	72 Outperform	18.59B	6.96	21.55%	1.30%	20.01%	290.10%
6561	69 Neutral	13.61B	8.05	46.79%	2.77%	10.02%	24.85%
9656	69 Neutral	6.49B	11.95	5.25%	2.39%	1.58%	55.41%
9704	53 Neutral	16.25B	66.29	2.84%	―	17.45%	664.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%